March 18, 2026, 3:10 p.m.
Hawaii State Capitol
Conference Room 224 and Videoconference
To: Senate Committee on Agriculture and Environment
Sen. Mike Gabbard, Chair
Sen. Herbert M. “Tim” Richards, III, Vice Chair
Senate Committee on Energy and Intergovernmental Affairs
Sen. Glenn Wakai, Chair
Sen. Stanley Chang, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY IN OPPOSITION TO HB1620 HD2 — RELATING TO TAXATION
Aloha Chair, Vice Chair and other Committee Members,
The Grassroot Institute of Hawaii opposes HB1620 HD2, which would increase the environmental response, energy and food security tax from $1.05 per barrel of petroleum to an undetermined amount.
Hawaii’s residents and businesses cannot afford new taxes, tax increases, fees or surcharges. Any increase in the tax rates for petroleum products will only contribute to the high cost of living, especially the state’s high energy and gas prices.
Hawaii residents already pay the highest electricity prices in the country,[1] and the islands that depend heavily on petroleum to provide grid-scale electricity — especially Lanai, Molokai and Oahu — would be hit hardest by the increase proposed in this legislation.[2]
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
Footnotes
- “Hawaii,” U.S. Energy Information Administration, May 15, 2025.
- Leon R. Roose, Marc Matsuura and Damon Schmidt, “Fundamentals of Energy Transition in the Pacific Island Countries and Territories,” GridSTART, Oct. 24, 2025, pp. 8-9.
